Mutual fund expense ratios dropped for the third straight year in 2006 amid the rise in assets, according to Morningstar. The average individual investor paid 93 bps for U.S. stock funds last year, down from 96 bps in 2005. The biggest drop occurred in international funds, with the average individual investor paying 107 bps versus 113 bps in 2005. Expenses in balanced funds dipped from 82 bps to 79 bps while taxable bond expenses dropped from 84 bps to 81 bps. Municipal-bond fund expenses didn't budge at 75 bps. 

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